Please help

Problem 11-18 Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] 1 know headquarters wants us to add that new pr But I want to see the numbers before I make any move. Our division's return on investment (ROu has led the company for three years Office Products Division. are evaluated on the basis of ROL with given to the divisional managers who have the highest ROls. Operating results tfor the company's Office Products Division for this year are given below sales Contribution margin Net operating incone Divisional average operating assets Division has an opportunity to add a new product line that would require an additional Investment that would increase average operating assets by $2,501500. The cost and revenue charactenstics of the new product line per year would be 65% of sales Fixed expenses nRtewproduct line by tset s ROIl for this year ms the same as this year and adds the new product ute the Office Products Division's ROl for next year assuming that bt would you accept or reject the new product line s Division to add the new product line? operating ass 5 Why do you suppose residual income b. Compute the Office Products new product line rters is anxious for the Office P is 13% and that performance is evaluated using that the company's minimum required rate of retun on s residual s residual income for the new product line by itseit this year e the Office Products Division's residual income for next